Crystal Cathedral gave insiders $832,000 for housing

Crystal Cathedral Ministries filed for Chapter 11 bankruptcy Oct. 12. Recent court filings show the cathedral through its financial turmoil, continued to pay family members and insiders generous salaries and housing allowances.LEONARD ORTIZ, THE ORANGE COUNTY REGISTER

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GARDEN GROVE – Tax-exempt housing allowances make up almost half of the compensation given to Schuller family members and insiders who own homes in Newport Coast, Laguna Beach, Hawaii and even the infamous $1.8 million Colorado mansion where child beauty queen JonBenet Ramsey was murdered.

According to the Crystal Cathedral's most recent bankruptcy court filings, a total of $832,940 in housing allowances were given to the families of all five children of the megachurch's founder Robert H. Schuller as well as a few top executives.

Among those receiving the allowances were Schuller son-in-law Paul Dunn, who lives with his wife, Jeanne, in Hawaii, as well as Carol and Tim Milner, who paid a little over $1 million in 2004 for the Ramsey estate.

The issue of housing allowances for members of the clergy has been a controversial one over the years. Critics have questioned the constitutionality of the tax provision, which offers a unique benefit to religious organizations. A 2001 case, which has since been settled, involved Saddleback Church Pastor Rick Warren, who claimed a tax-exempt housing allowance of $80,000.

Jim Penner, teaching pastor at the Crystal Cathedral, maintains that all of the Schuller children and their spouses have a role in the ministry and have been hired because they are qualified. Penner, who also produces the "Hour of Power" broadcasts, got $87,288 in housing allowance. His total compensationfor that time period was about $153,108.

The tax relief is a great incentive the church can offer to get qualified people to serve as clergy and church executives, he said.

Robert H. Schuller's son-in-law, James Coleman, received $76,524 in housing allowances and a total salary of $144,100. Court records show Carol and Tim Milner, who now live in Orange County, received $109,385 in housing allowances.

The Milners could not be reached for comment Tuesday.

THE JONBENET RAMSEY HOUSE

In 2007, the Milners renovated the Boulder, Colo., house, according to an article in the Boulder Daily Camera. The newspaper stated that the basement where JonBenet's strangled, beaten body was found was being finished into a recreation room with a wet bar and a wine cellar by the Milners. According to the plans, the utility room where JonBenet was eventually found dead was left unaltered.

The 7,000-square-foot home, now valued at more than $1.8 million, was on the market from May 2009 to January 2010, said Boulder Realtor Beth Mason. It is no longer for sale, she said.

Tim Milner was quoted in the local newspaper in 2004 saying that the house was "perfect" for his family. But a year and a half later, a "for sale" sign went up on the property and Milner complained to reporters about a continuous stream of onlookers and sightseers who would stop and sometimes take pictures in front of the house's gated exterior.

SALARIES, ALLOWANCES JUSTIFIED

Paul Dunn was paid $304,247 including a $142,281 housing allowance and $161,966 in vendor billings. According to the filings, Dunn is still owed $64,758 for the year. Jeanne Dunn, according to the filings, received a vendor payment of $49,000. The Dunns together are responsible for producing the cathedral's two iconic pageants, "Glory of Christmas" and "Glory of Easter." Both pageants were canceled this year because of the church's financial troubles.

Crystal Cathedral Ministries filed for Chapter 11 bankruptcy Oct. 12. Recent court filings show the cathedral through its financial turmoil, continued to pay family members and insiders generous salaries and housing allowances. LEONARD ORTIZ, THE ORANGE COUNTY REGISTER
The home made infamous by the 1996 murder of six-year-old JonBenet Ramsey, is seen in this 2006 file photo, in Boulder, Colo. The 7,000square-foot home was purchased by Robert H. Schuller's daughter, Carol Milner, and her husband, Tim, in 2004 for a little over $1 million. AP PHOTO
This image made from an undated family video shows JonBenet Ramsey performing during a beauty pageant. Robert H. Schuller's daughter Carol Milner, and her husband, Tim Milner, purchased the Boulder, Colo. mansion where JonBenet were murdered. AP PHOTO
Rev. Robert H. Schuller speaks to church members and visitors during the celebration service for the installation of his son Dr. Robert A. Schuller as senior pastor at Crystal Cathedral in Garden Grove, Calif. on Sunday morning, Jan. 22, 2006. FILE PHOTO, THE ORANGE COUNTY REGISTER
The glass panes of the landmark Crystal Cathedral in Garden Grove reflect the rain clouds of a storm that hit Orange County. Crystal Cathedral Ministries, the megachurch founded by television evangelist Robert H. Schuller, filed for Chapter 11 bankruptcy Oct. 12. The cathedral owes about about $7.5 million to unsecured creditors. The bankruptcy filing seeks court protection from its creditors. Pictured, from left, The Tower Chapel, the Crystal Cathedral, and back right, the Spire and Prayer Chapel. LEONARD ORTIZ, THE ORANGE COUNTY REGISTER

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